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EUR/USD Price Forecast – Euro Pulls Back

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Euro vs US Dollar Technical Analysis

The Euro has pulled back a bit from the 50 day EMA, where we had pressured it during the previous session. At this point, it looks like we are going to try to continue the overall downturn, but I also see quite a bit of resistance near the 1.08 level even if we do break out to the outside. With that being the case, I like the idea of shorting this market on signs of weakness, or signs of exhaustion on short-term rallies.

Underneath, I see the 1.05 level as a potential support level, and perhaps even a potential target. As long as that’s going to be the case, I would anticipate that there should be some buying pressure there, but I think that’s where we end up before it’s all said and done. The market will continue to see a lot of noisy behavior, but at the end of the day, we will favor the US dollar over the Euro, despite the fact that the ECB is now starting to talk about the idea of raising interest rates by 25 basis points.

That being said, it is still paltry in comparison to the Federal Reserve, so it makes a lot of sense that we will continue to see the US dollar strengthen. It doesn’t mean that it happens in one shot, and therefore this balance should not be a huge surprise. Given enough time, I do think that we revisit the lows, and it does seem like the Euro will eventually try to find parity this summer. It is not until we break through the 1.09 level that I begin to question the downtrend, which would have to be accompanied by something going on in the US bond market.

EUR/USD Price Forecast Video 26.05.22

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This article was originally posted on FX Empire

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